Bitcoin Looks Poised to Accelerate Sharply

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Well, it took a short while, but the first of the resistance arcs holding back Bitcoin price gave way today.  The 2nd arc of the pair is resisting as of this writing, but it seems highly likely that this resistance will also fail, and make the 5th arc pair the next target.

11_1aThis suggests a target in the $850 range as the next target.  This price was indicated in a setup we looked at on these pages almost 2 weeks ago. It is increasingly looking like this is a good market to be in.  Let’s look at a longer bull setup of the same daily chart:

11_1b

This was the chart we looked at a few weeks ago and concluded that the long term trend for the next several months was up.

Nothing has changed. In fact, this longer term setup strikes me as VERY bullish.  The 1st chart we looked at above, suggests resistance at $850, but the latter chart suggests the possibility of a new high by the end of the year.  That 5th arc pair is way up in the $1450 range.

Note that on this setup we are just a day or two or three from the end of the 3rd square.  This could herald a reversal of course (never say never).  But it seems far more likely to me that an acceleration to the upside beckons.  Based on the surrender of the 1st of the 4th arc pair in the first chart, I have re-entered a long position with a stop that is a bit wider than normal in case the 2nd arc of the pair kicks price back for a bit.  But in this case, even though the 2nd arc of the pair is still resisting, I am willing to throw away some caution, because it is starting to look like a very good trading opportunity might be on the horizon.

Happy trading!

Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.

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Jim has an MBA from the University of Southern California. He has been trading commodities, forex and bitcoin since 1993. You may email him directly at: jimfred1276 at gmail dot com. Feel free to follow him on twitter.